Amazon monthly payment plans: How do they work and what are your options?

There isn’t much you can’t buy on Amazon, including big-ticket products like flagship smartphones, laptops, TVs, and even tiny houses! If you’re worried about saving up before making an expensive purchase, Amazon makes things a little easier with its monthly installment plans that break up the payment into more manageable chunks. Here’s everything you need to know about Amazon’s monthly payment plan.

Amazon monthly payment plans: An overview

Amazon offers a monthly payment plan to specific customers on select products. The good news is that Amazon doesn’t run a credit check to see if you qualify for the program. Instead, eligibility depends on information related to your Amazon account, like your purchase history, linked payment methods, previous payment plan performance, and more. You don’t have to be an Amazon Prime subscriber to qualify for monthly installments, either.

While Amazon US doesn’t explicitly state any requirements, the eligibility criteria in other markets are a good indicator. In Canada and the UK, Amazon says that you need to have an Amazon account for at least a year, have a valid credit card associated with your account, and have a good payment history to be eligible for monthly payments.

How do the Amazon payment plans work?

The plan’s duration depends on the price. Some quality for up to 12 months. Most last only four months, though, with the first payment due at checkout.

Amazon monthly payment plan schedule:

• Initial down payment: On shipment day.
• First payment: 30 days after shipment.
• Second payment: 60 days after shipment.
• Third payment: 90 days after shipment.
• Fourth payment: 120 days after shipment.

You must pay the initial down payment, delivery charges, and all applicable taxes when you purchase the item. Amazon will charge your card monthly for the remaining payments for the next four months. You also have the option to prepay an installment or the rest of the item’s price early.

These payment plans incur no interest. Still, make sure you pay, as being late on a payment may affect your future accessibility to these payment plan offers.

What can I buy?

Most Amazon products, from smart speakers to Fire TVs, are usually available for purchase with a payment plan. You might also see products like smartphones, smartwatches, laptops, TVs, headphones, cameras, shoes, jewelry, and more, depending on your eligibility. The one condition is that the item has to be shipped and sold by Amazon. You will not see the option for Amazon’s monthly payments with third-party sellers.

The list of products you will see changes depending on your eligibility and the product’s price. An excellent way to check which products qualify, and your eligibility, is to search for “Amazon monthly payments items” on Amazon. You will see a line below the product’s price that says “monthly payments of $X/month for Y months” if you can purchase a product with monthly installments.

According to Amazon, there is also a list of items for which you can’t use its payment plans. Even if these come from Amazon.

Things you can’t buy using an Amazon payment plan:

Are there any fees or interest charges?

No, Amazon doesn’t charge any fees or interest charges when you use its monthly payment plans. Only the cost of the item is divided into equal monthly payments, while delivery charges and all taxes are charged as a part of the initial payment.

What happens when I miss a payment?

One of the conditions of eligibility is to have a credit card linked to your account that is valid for at least 20 days beyond the end of your payment plan. If a payment fails on your card, Amazon will try and charge another card stored on your account to complete it. If all payment options fail, Amazon reserves the right to pursue any method available to collect the outstanding balance. Amazon can also suspend or terminate your account and deregister any Amazon devices you have linked to your account. This will essentially turn your Amazon device into an expensive paperweight.

There is a high chance you won’t be able to benefit from Amazon payment plans in the future, if you miss a payment. I am pretty sure this happened to me. I was late on a payment years ago, but ended up paying it a couple of days after the due date. The payment plan options haven’t shown up since then. It could also be the fact that I now have an Amazon Store Card and Amazon Prime Visa Card, which they likely prefer I use.

Should I buy something using Amazon’s payment plan?

If you meet the eligibility criteria, buying something using Amazon’s monthly installment plans is not a bad idea as long as you’re doing it responsibly. You still pay the same amount with no hidden interest charges or fees. The installment plan lets you spread the payment out a few months to a year to make it easier on your wallet. Of course, with the way the list of qualified products and your eligibility changes, it isn’t easy to pre-plan your purchases.

Remember that you might not be able to make multiple big-ticket purchases simultaneously, though, since Amazon will limit how many simultaneous installment plans you can have.

Does Amazon offer payment plans for its credit card holders?

We focused on Amazon’s own payment plans for this post. These require no credit check, and they are offered directly from Amazon. Things can get a bit more interesting if you get yourself one of Amazon’s credit cards, though. These include the Amazon Prime Visa and Amazon Prime Store Card.

Amazon cardholders can also choose equal monthly payment plans on some orders. These will allow you to divide monthly payments over three months if the order totals $50 to $148.99. The time gets extended to six months if the purchase totals $149 to $299.99. Additionally, you can extend that period to 12 months if the order is over $300. Some purchases also qualify for 18 and 24-month equal payments at this price level, but extending the period over a year also comes with a 10% APR, as opposed to 0%.

Furthermore, Amazon may offer cardholders special financing options. You can get 0% financing through this method, but it works a little differently. Instead of dividing the total cost into equal payments, you pretty much get a total due date. You will be charged no interest if you pay the purchase’s balance by the predetermined time. If you don’t cover the purchase by this time, though, the card will incur interest for the whole time since the purchase was made.

The amount of months you get to pay a special financing charge depends on the purchase’s total. Purchases of $150 to $599.99 get six months. Buying $600 or more extends that to 12 months. The offer can go up to 24 months, but that is only for select purchases.

If you’re interested, you can apply for one of Amazon’s credit cards here.

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